Silver prices reached a new record high of ₹2.41 lakh per kg in Delhi markets on Tuesday, continuing its exceptional rally with a ₹1,000 gain. Gold extended its decline for the second consecutive day, falling ₹2,800 to ₹1,39,000 per 10 grams as profit-taking pressured the yellow metal.

The All India Sarafa Association reported silver's latest milestone, driven by firm global cues and strong industrial demand. This marks another chapter in silver's remarkable performance streak that has captivated precious metals markets.

Silver's Record-Breaking Rally

Silver's momentum continues to impress market participants, with the white metal demonstrating exceptional strength across multiple trading sessions.

On the Multi Commodity Exchange, silver futures for March 2026 delivery soared by ₹9,590, or 4.27%, to ₹2,34,019 per kilogram. The white metal had previously skyrocketed by ₹14,387, or 6%, to touch a record high of ₹2,54,174 per kilogram on Monday.

Gold Extends Decline

In contrast to silver's stellar performance, gold of 99.9% purity extended its losses for the second straight day. The yellow metal declined ₹2,800 to ₹1,39,000 per 10 grams (inclusive of all taxes) from the previous close of ₹1,41,800 per 10 grams on Monday.

International Market Dynamics

Global precious metals markets showed mixed signals with silver gaining momentum while gold also posted gains in international trading.

Strong industrial demand and firm global prices boosted the white metal in local markets, according to market participants.

Expert Analysis and Outlook

Jigar Trivedi, Senior Research Analyst at Reliance Securities, highlighted the structural factors supporting silver's performance. "Despite near-term volatility, silver continues to find support from structural supply constraints and strong industrial demand, particularly from solar, electronics, and data center infrastructure. However, stricter margin rules may keep price gains measured in the short term," Trivedi explained.

He projected that MCX Silver March may appreciate to ₹2,26,000 per kg as the undertone remains bullish in international markets. The analyst emphasized that silver benefits from prolonged supply deficits and surging industrial demand, especially from solar, AI, EVs, and electronics sectors, keeping it in price-discovery territory.

Market Drivers and Industrial Demand

The divergence in performance between gold and silver reflects rising demand for tangible assets amid inflation concerns and resilient industrial consumption. Silver's exceptional rally is underpinned by mounting geopolitical risks and structural supply tightness across multiple industrial applications.

According to market experts, commodities have arguably become the standout outperformer while equities continue to deliver modest gains. The bullish trend in commodities appears poised to persist, driven by enduring structural dynamics across multiple sectors including renewable energy, technology infrastructure, and electronic manufacturing.

Gold has reinforced its reputation as a reliable safe haven asset, delivering extraordinary returns to investors over the past five years. The precious metal's remarkable performance has turned modest investments into substantial wealth, with prices surging over 250% between 2020 and 2025.

Exceptional Five-Year Performance

The numbers tell a compelling story of gold's appreciation. An investor purchasing 10 grams of gold at the beginning of 2020 would have paid ₹38,995, while the same quantity commanded ₹1,36,649 as of December 29, 2025, according to Bloomberg data.

This 250.4% appreciation over five years demonstrates gold's ability to multiply wealth significantly. An investor who allocated ₹1 lakh to gold in January 2020 would have acquired approximately 25.64 grams of the precious metal, now worth a substantial ₹3.5 lakh.

Decade-Long Growth Trajectory

Gold's impressive performance extends beyond the recent five-year period. Over the last decade, the yellow metal has surged nearly 431%, delivering returns more than five times its worth from 2015 levels. This consistent growth pattern has strengthened investor confidence in the commodity and validated its traditional role as a portfolio diversifier.

Market Outlook

Analysts maintain a constructive outlook for gold's prospects, citing several supportive factors. According to analysts at Amit Kedia Advisories, gold's structural drivers remain robust, including:

• Ongoing geopolitical risks
• Continued central bank accumulation
• Sustained ETF demand
• Strong long-term fundamental backdrop

However, analysts caution against momentum chasing, noting that some catalysts may gradually mature, potentially leading to intermittent corrections. A deeper correction of 15-20% remains possible if risk sentiment improves significantly or ETF flows reverse direction.

Investment Strategy Recommendations

For investors seeking gold exposure, experts recommend maintaining disciplined investment approaches. Key strategies include:

• Continuing exposure through gold ETFs
• Adopting systematic investment plans (SIP) to manage volatility
• Maintaining long-term perspective despite short-term fluctuations

Gold's performance over the past five years underscores its enduring appeal as both a wealth preservation tool and growth asset, particularly during periods of market uncertainty and economic volatility.

Analysts project further 10-12% upside with prices potentially reaching ₹1,50,000 per 10 grams, reinforcing the metal's continued attractiveness as an investment option.